Skip to content

Law Dictionary Home Dictionary Definition pension

Pension, an annual allowance made to any one, usually in consideration of past services. By the (English) Succession to the Crown Act, 1707, (6 Anne, c. 7) (c. 41 in the Revised Statutes), and 1 Geo. 1, st. 2, c. 56, no person having a pension under the Crown during pleasure, or for any term of years, is capable of being elected or sitting in the House of Commons. Old Age Pension.--The (English) Old Age Pensions Act, 1908, which was not on a contributory basis, gave to every person the right to a pension who fulfilled certain conditions. The Act, with the amending (English) Old Age Pensions Acts, 1911, 1919 and 1924, has been repealed by the (English) Consolidating Old Age Pensions Act, 1936 (26 Geo. 5 and 1 Edw. 8, c. 31). These conditions are contained in s. 2 of the Act of 1936, as follows:- 2. The statutory conditions for the receipt of an old age pension by any person are-- (1)The person must have attained the age of seventy, or in the case of a blind person, the age of fifty. (2)The person must satisfy the pension authorities that for at least ten years up to the date of the receipt of any sum on account of a pension he has been a British subject, and that he has been resident in the United Kingdom, if he is natural-born British subject, for an aggregate of not less than twelve years since attaining the age of fifty years or in the case of a blind person thirty years and, if he is not a natural-born British subject, for an aggregate period of twenty years. (3)The person must satisfy the pension authorities that his yearly means as calculated in accordance with the provisions of the first schedule to the Act, after deducting therefrom such part, if any, thereof, but not exceeding in any case thirty-nine pounds, as is derived from any source other than earnings, do not exceed forty-nine pounds seventeen shillings and six pence. There are, however, several disqualifications, chief of which are the receipt of poor relief; or being detained in prison without the option of a fine; or maintained as a rate aided patient of unsound mind; or criminal lunatic; or in a mental hospital. But see (English) Widows, Orphans and Old Age Contributory Pensions Act, 1936, s. 11, in regard to pensions to persons who have been entitled under the contributory Acts becoming entitled after attaining 70 years of age to old age pensions although statutory conditions as to means, residence, or locality have not been fulfilled. The pension is 10s. per week where the yearly means do not exceed 26l. 5s. Between this sum and the yearly means of 49l. 17s. 6d. the pension is in accordance with a sliding scale. Contributory Pensions.--A contributory old age pension under the (English) Widows, Orphans and Old Age Contributory Pensions Act, 1936 (26 Geo. 5 and 1 Edw. 8, c. 33), consolidating the Acts of 1925 and 1929, 1931, is paid to persons between sixty-five and seventy, whereas non-contributory old age pensions are payable at seventy; see ante, and ss. 8, 9, 10 and 11 of this Act (c. 33). The (English) Old Age Pensions and the Widows, Orphans and Old Age Contributory Pensions Act, for persons insured under the (English) National Health Insurance Acts, 1936, and others (see s. 2 of c. 33, 1936), is administered by the (English) Ministry of Health by Ministry of Health Act, 1919, s. 3. Neither old age nor contributory pensions are assignable, nor do they pass to the trustee in bankruptcy (s. 7 of c. 31 and s. 36 of c. 33, respectively of 1936). Claims and questions relating to old age pensioners are made to and considered by local pensions committees appointed by the county or borough or urban district councils with a population of over 20,000 and then referred to the local pensions officer for inquiries and report, on which the committee give their decision. Claims relating to contributory pensions are to be made to the Minister of Health, and then may be made to referees (s. 30 of c. 33). Pensions are payable under special statutory pro-visions to grantees from the Crown, for political, naval and military, police, civil and other services and for services under local authorities under the (English) Local Government Officers' Superannua-tion Act, 1922 (12 & 13 Geo. 5, c. 59), and adoptive Act for local authorities and other public bodies. Pensions for the clergy have been provided by the (English) Clergy Pensions Measures, 1926 (16 & 17 Geo. 5, No. 6), as amended and extended by later measures, of which the most recent are the(English) Clergy Pensions Measures, 1930 (No. 6), 1936 (Nos. 1 and 3), and see the (English) Ecclesiastical Commissioners (Provision for Unbeneficed Clergy) Measure, 1928 (18 & 19 Geo. 5, No. 1). See Chitty's Statutes, tit. 'Pension,' and SUPERANNUATION. Pension is periodical payment of money for past services, Shaukat Husain Beg Mirza v. State of Uttar Pradesh, AIR 1959 All 769 (770). (Pension Act, 1871) The allowance so payable to a retiring government servant, in recognition of his past services is 'pension' within the meaning of clause 2 of Article VIII of the Merger Agreement, State of Gujarat v. Dr. R.B. Chandrachud, AIR 1971 SC 846 (853): (1969) 1 SCC 300: (1969) 2 SCR 755. Pension is neither a bounty nor a matter of grace depending upon the sweet will of the employer, nor an ex gratia payment but it is a payment for the past service rendered; and (iii) it is a social welfare measure rendering socio-economic justice to those who in the hey-day of their life ceaselessly toiled for the employer on as assurance that in their old age they would not be left in lurch. Pension as a retirement benefit is in consonance with and furtherance of the goals of the Constitution. The most practical raison d'etre for pensions is the inability to provide for oneself due to old age. It creates a vested right and is governed by the statutory rules such as the Central Civil Services (Pension) Rules which are enacted in exercise of power conferred by Articles 309 and 148(5) of the Constitution, D.S. Nakara v. Union of India, AIR 1983 SC 130: (1983) 1 SCC 305. Pension is not merely a statutory right but it is the fulfilment of a constitutional promise inasmuch as it partakes the character of public assistance in case of unemployment, old-age, disablement or similar other cases of undeserved want. Relevant rules merely make effective the constitutional mandate. Pension is a right not a bounty or gratuitous payment, Poonamal v. Union of India, AIR 1985 SC 1196: (1985) 3 SCC 345: (1985) 3 SCR 1042; see also Deakinandan Prasad v. State of Bihar, AIR 1971 SC 1409. Means a pension, whether contributory or not, of any kind whatsoever payable to or in respect of any person, and includes retired pay so payable, a gratuity so payable and any sum or sums so payable by way of the return, with or without interest thereon or any other addition thereto, of subscriptions to a provident fund. [Constitution of India, Article 366(17)] Includes gratuity except when the term 'pension' is used in contradistinction to gratuity, Jarnail Singh v. Secretary, Ministry of Home Affairs, AIR 1994 SC 1484: (1993) SCC (L&S) 119: (1993) 2 SCJ 43: (1993) 1 UJ (SC) 205. [See Central Civil Services (Pension) Rules, 1972, (as amended by 3rd Amendment Rules (1991), r. 3(1)] Pension, is a bounty for past services; a periodical allowance or stipend granted on account of past services, Bikram Bahadur v. CIT, AIR 1969 MP 127: (1969) Jab LT 435. Pension, is not a bounty payable on the sweet will and pleasure of the government and the right to pension is a valuable right vesting in a government servant. The right to receive pension in property under Art. 31(1) of the Constitution of India and by a mere executive order the State has no power to withhold the same, Deokinavdan Prasad v. State of Bihar, AIR 1971 SC 1409: (1971) 2 SCC 330. Means a pension of any kind payable to a person; includes retired pay, gratuity,any sum or sums payable by way of return of subscription to a provident fund. [Constitution of India, Art. 366(17)] Means a periodical allowance or stipend granted, not is respect of any right, privilege, perquisite of office but, on account of past service or particular merits or as compensation to dethroned princes, their families and dependants, Bankey Beharilal v. Lal Babu, AIR 1951 All 1. Pension, must be a periodical payment, and it must be a grant not in respect of any right, privilege, perquisite or office but on political considerations or on account of past services, or present infirmities or as a compassionate allowance, Shaukat Hussain v. State of Uttar Pradesh, AIR 1959 All 769.

Save Judgments// Add Notes // Store Search Result sets // Organizer Client Files //